Abstract
The study examined the influence of firm complexity on tax aggressiveness of Listed Deposit Money Banks in Nigeria and South Africa. The study employed the longitudinal research design in a cross-country comparative analysis approach. The sample size consists of an equal sample of the 13 listed deposit money banks quoted on the Nigerian Exchange Group (NGX) and 13 listed deposit money banks quoted on the Johannesburg Stock Exchange, South Africa. Secondary data was used for the study as extracted from the annual reports and financial statements of the selected banks for a nine-year period of 2012-2020. The panel data were analyzed using a descriptive statistic, correlation and panel data regression technique which was dually estimated to capture the samples of both countries. The outcome of the Nigerian model showed that firm complexity asserted significant negative impacts on tax aggressiveness in Nigeria, and in model ii, it showed that firm complexity has an insignificant negative impact on tax aggressiveness in South Africa. The study recommends, among others, that the notion that highly diversified banks engaged in less tax aggression was upheld in the Nigerian sample. Since most diversified Nigerian companies had subsidiaries and cross-border affiliations with South Africa, there is a need for both governments to simplify the tax laws and focus more on creating a tax culture in order to foster voluntary compliance among multinationals.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.